HB 2803 Summary

• Requires brewers to provide beer distributors written notice specifying noncompliance and allow 60 days to cure before termination, unless immediate termination grounds exist (payment failure, bankruptcy, license revocation, felony conviction, fraudulent conduct, etc.).

• Allows brewers to immediately terminate distribution agreements for specific violations including non-payment, bankruptcy, license suspension for more than 14 days, felony convictions affecting goodwill, unlawful violations, unauthorized ownership transfers, fraudulent conduct, five consecutive business days without operation, or intentional sales outside assigned territory.

• Requires newly appointed distributors to purchase remaining inventory at laid-in cost from terminated distributors and mandates brewers pay fair market value for distribution rights lost due to termination, with disputes resolved through arbitration before a three-arbitrator panel.

• Requires arbitrators to have at least 15 years of franchise law experience and allows appeals of arbitration decisions only on questions of law error to state or federal court; limits arbitration awards to monetary damages.

• Applies termination and inventory purchase requirements to small brewers and extends all provisions to cider manufacturers distributing through beer distributors; becomes effective November 1, 2025.